Oil from US Reserves Head Overseas as Gasoline Prices Stay High

The flow is draining the U.S. Strategic Petroleum Reserve, which last month fell to the lowest since 1986.

Arathy Somasekhar, Reuters

More than 5 million barrels of oil that were part of a historic U.S. emergency oil reserves release aimed at lowering domestic fuel prices were exported to Europe and Asia last month, according to data and sources, even as U.S. gasoline and diesel prices touched record highs.

The export of crude and fuel is blunting the impact of the moves by U.S. President Joe Biden designed to lower record pump prices. Biden on July 2 renewed a call for gasoline suppliers to cut their prices, drawing criticism from Amazon founder Jeff Bezos.

About 1 million bbl/d is being released from the Strategic Petroleum Reserve (SPR) through October. The flow is draining the SPR, which last month fell to the lowest since 1986. U.S. crude futures are above $105/bbl and gasoline and diesel prices above $5 a gallon in one-fifth of the nation. U.S. officials have said oil prices could be higher if the SPR had not been tapped.

Already have an account? Log In

Sign up for FREE access to view this article now!

Unlock Free Access